Applications have been invited from corporate entities for submission of a resolution plan for debtridden Jaypee Infratech to move ahead with the process under the insolvency law. The NCLT-appointed insolvency resolution professional (IRP) Anuj Jain has invited expressions of interest (EoI) from corporates having a minimum net worth of Rs 1,000 crore as well as investment companies and fund houses with minimum assets under management of at least Rs 1,000 crore. The last date for submitting EoI is November 7.
Listing out the eligibility criteria, the IRP said the parties interested will have to satisfy the mandatory requirements of the resolution plan provided in the under the Insolvency and Bankruptcy Code and its regulations. They should have the ability to execute real estate projects either directly or through joint ventures, contractors and the like through a resolution plan to be sanctioned under the IBC.
The corporate entities should be of good financial health and repute as well as have the ability to invest Rs 2,000 crore or more to complete the construction of flats. Interested parties should protect the interest of homebuyers generally and in particular by timely construction and possession of flats. Jaypee Infratech, part of the debt-ridden Jaypee group, has defaulted on Rs 526.11 crore outstanding loan to IDBI Bank.
The National Company Law Tribunal (NCLT) has admitted the application by an IDBI Bankled consortium seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code. The invitation for EOI's carries the process forward. Jaypee Infratech, which is into road construction and real estate business, has constructed the Yamuna Expressway, connecting Delhi and Agra.
The company is developing more than 30,000 flats in Noida, most of which are incomplete. Homebuyers have been protesting against inordinate delays in completion of the projects. The Supreme Court had on Wednesday rejected the Jaypee group's plea to let it hive off the rights of multi-crore sixlane Yamuna Expressway connecting Greater Noida with Agra in order to raise funds to repay the homebuyers .
The group had approached the court seeking permission to hive off the rights of the expressway and recall the September 11 order in which the court had asked it to deposit Rs 2,000 crore to refund home buyers. However, IDBI Bank had opposed the plea on the ground that the Yamuna Expressway did not belong to the Jaypee Group and the concession agreement with the government was not transferable.
The counsel for Yamuna Expressway Industrial Development Authority had also informed the court that the rights under the concession agreement for the expressway project were non-transferable. The Supreme Court, however, extended the time from October 27 to November 5 for the company to deposit Rs 2,000 crore.